With your daily business operations, the last thing you want to worry about is the reliability and cost of your business’ energy supply. An investment in a solar and storage solution helps businesses generate and store their own power onsite, saving them money on their kWh energy charges and kW demand charges.
Solar is an energy source that empowers businesses to reduce their reliance on the utility grid. It is sustainable, efficient and cost-effective. It also combines the reliability of your traditional energy supply with sustainability requirements to lessen your carbon footprint and meet sustainability goals. When combined with a battery storage solution, it is resilient in the face of expensive peak demand charges. With generous solar incentives from the federal and state governments, making the transition to solar has never been simpler. States such as Massachusetts and New Jersey are leading the charge with established programs that make solar a more readily available resource.
Massachusetts has historically endorsed solar as a preferred energy solution. With high electricity rates that result in a short payback period from the solar investment, the state offers unique incentives such as the production-based Solar Massachusetts Renewable Target (SMART) program. Qualifying solar installations receive an “All-In-Rate” compensation from the state which sets a fixed rate per kilowatt-hour (kWh) of solar energy produced. Applications for Block 1 of SMART began in 2018 and to secure the greatest program incentive, it’s imperative Massachusetts-based businesses invest in solar now. This guarantees your business will be included in an earlier block which saves you money (rates decrease by four percent in each subsequent block.)
New Jersey has also been on the cutting edge of solar energy for quite some time. With several programs available, including the Renewable Portfolio Standard (RPS) – which has a dedicated carve-out for solar power – and Solar Renewable Energy Credits (SRECs), it’s an attractive energy choice for businesses in New Jersey. Your solar system doesn’t simply generate power for your business – with the New Jersey SREC program, every 1,000 kilowatt-hours (kWh) of solar energy produced yields one SREC, which can be sold on the open market to help utilities meet the New Jersey RPS standards.
In addition to state incentives, national programs are also available to reduce the cost of solar investment. Offerings include the Business Energy Investment Tax Credit (ITC) which, according to Energy.gov, assumes a third of the total cost of the solar system1, as well as the Accelerated Depreciation Bonus – system cost can be fully depreciated in the first year, and considering the new corporate tax rate, this means the federal government covers 21 percent of your solar system cost. Other programs are available based upon need, location and the structure of the unique solar system.
As you contemplate the resilience of your business, consider solar from Centrica Business Solutions. Our customized service and extensive experience ensures we can provide the right solar solution for your business while also maximizing your energy strategy. Our custom solar installations range from rooftops to carports to ground mounts – combining solar with a battery storage solution can add even greater resilience and improved downtime. In addition, our industry-leading 10-year workmanship warranty and production guarantee ensure a stress-free investment.
Solar prices are at all-time lows and incentives are always changing, so it’s important to act now. The combination of solar incentives, our extensive experience and immediate efficiencies make solar an integral part of your energy strategy.
Sources: 1Energy.gov: https://www.energy.gov/savings/business-energy-investment-tax-credit-itc
Tim Seamans
Tim Seamans serves as Head of Commercial Solar at Centrica Business Solutions. Tim is a 14 year veteran of the solar industry and has worked with a diverse group of teams to provide clients with an excellent financial return from solar and help build an distributed energy platform for future generations.
